Problem:
Together with Benjo, Benjamin signed a 40-year leasing agreement. According to the contract, Benjamin will build a structure on Benjo's land and keep it in use for 40 years. Upon expiration of the lease, Benjo will become the owner of the structure. Before the building is finished, the leasing will not yet commence. On January 1, 2022, Benjamin completed the structure for a total of P40,000,000. The structure is anticipated to be in operation for 50 years. Use the spread-out approach to determine Benjo's income from the leasehold improvement that will be reported in 2022. A. P200,000 B. P4,000,000 C. P8,000,000 D. P32,000,000